The Huge Benefits of Outsourcing Hospitality Accounting Services to Experts

• 03 10 2024

Doing taxes is like going to the dentist - nobody wants to do it, but it's a necessity.

We've all been there. Staring at a mountain of receipts, invoices, bank statements and dealing with the stress of meeting tax deadlines while also running a busy hospitality business. It's no surprise that hospitality owners often cite accounting and financial admin as one of their least favourite tasks. But did you know outsourcing your hospitality accounting to experts could be a game changer for your business?

In this post, we'll explore the top benefits of outsourcing your accounting needs and how it can help you spend more time focusing on what really matters - your customers!

Managing compliance gets easier

As a hospitality business owner, you already have your hands full with customer service, staff management, marketing and all the other demands of running a successful operation. The last thing you need is to spend hours poring over financial reports and tax docs, trying to ensure everything is correctly filed and complied with.

Outsourcing to an accounting firm means handing over the responsibility of keeping on top of ever-changing tax laws and compliance requirements to professionals. They will take care of bookkeeping, submit payroll taxes, and file VAT and income tax returns accurately and on time, so you don't have to worry. This gives you peace of mind knowing a team of experts has your compliance covered.

You gain expert insights

When you outsource your hospitality accounting services, you gain the insight and advice of qualified accountants experienced in your sector. A good firm will offer more than just basic bookkeeping - they act as your financial advisor and strategic partner.

Experts can provide industry benchmarking to see how your operation stacks up financially against competitors. They'll notice trends in your numbers that you may miss and offer tips on how to maximise profits. For example, they may suggest adjusting menu pricing based on cost analyses. Or recommend reworking staff scheduling to save on overtime costs.

Having accountants who deeply understand hospitality finances on your side means informed decision making for your business.

Increased efficiency through streamlined processes

Running financial processes in-house often means juggling multiple accounting software programs, filing cabinets full of paper receipts and invoices, and inefficient manual data entry. This wastes valuable time that would be better spent elsewhere.

An accounting outsourcing partner centralises all your financial data in one cloud-based system tailored for the hospitality industry. Integrations sync transactions automatically between your point-of-sale, time-tracking, inventory and other systems for a holistic financial picture. They also implement workflows to streamline common tasks.

For example, invoice approval alerts sent directly to your mobile. Or automated purchase order generation. This frees you up from repetitive administrative tasks so you can focus on growing your business.

Save money on costly accounting software and staffing

In-house accounting requires expensive technology licences to properly manage finances for even mid-sized hospitality operations. Integrated suites with robust features like those typically used by accounting experts can carry 5-figure yearly price tags.

You also have to factor in the salary and benefits costs for an in-house bookkeeper or accountant. The average annual salary for a hospitality accountant in the UK is £30,000 according to the Office of National Statistics. Employer National Insurance contributions and other employment costs push this figure even higher.

Outsourced accounting starts from as low as £75 per month for basic bookkeeping with no major software or long-term staffing investments required. Hosted solutions and experts work on a low monthly subscription model creating significant recurring savings versus going it alone.

Access critical industry insights for better decision making

Did you know that the size of the UK hospitality industry is expected to grow from £57 billion in 2024 to £65 billion by 2029 according to research by Mordor Intelligence? This shows strong consumer demand even in the face of economic headwinds like inflation and possible recession.

By outsourcing to accounting experts deeply familiar with your sector, you gain actionable insights not available to many business owners hustling day-to-day operations. Things like benchmark analyses showing industry norms for key metrics. Or competitive trends in your city and how those may impact your business choices over the next year.

This outside perspective is invaluable for strategic planning and decision making. Things like knowing when to expand operations versus focusing on efficiencies. Or if a particular niche offers higher margins that could boost your bottom line. Input from industry veterans helps ensure you're making the best financial moves.

You gain a valuable strategic hospitality accounting partner

The best hospitality accounting outsourcing providers integrate seamlessly into your leadership team as a strategic advisor. They not only handle back-end finances but champion initiatives that boost cash flow and cut costs.

For example, a recent client saved £5,000 annually when their accountant identified inflated supply contracts ripe for renegotiation. Other partners identify tax credits, incentives, and COVID relief programs that hospitality owners often miss, representing big savings.

This collaborative partnership means they have a vested interest in your success beyond invoices. They operate as an extension of your management team focused on profitability, compliance and elevating your business to new heights. Few in-house bookkeepers are incentivized or equipped to contribute as robustly to the bigger picture. Their expertise multiplies your capacities and decision-making abilities.

Tax savings potential

Did you know that on average UK small businesses leave £8,000 annually unclaimed in R&D tax relief according to HMRC? Hospitality ventures exploring new recipes, processes or technology qualify but rarely file. Accounting outsourcing firms maintain experts tracking credits like this to review your eligibility and maximise refund value each cycle.

Experience also helps negotiate disputes or audit risks more favourably to resolve matters with financial authorities saving thousands. And specialty advisors comprehend complex cross-border transactions that threaten penalties when butchered alone.

Shifting tax prep and consulting relieves such risks concentrating your efforts running food/beverage operations with confidence compliances stay bulletproof. Leverage their perspectives and get all money legitimately due back in your pocket versus leaving funds on the table.

In summary

As any hospitality entrepreneur will tell you, there simply aren't enough hours in the day to handle every need of a successful, growing business.

Solutions4Caterers provide comprehensive accounting services for hotels and restaurants in a low-cost, flexible package tailored for your size and needs. Their team of certified accountants deliver best-in-class hospitality accounting software, streamlined workflows, industry expertise and on-demand advisory.

Contact us today to divest financial stresses while gaining strategic partners who propel your venture forward. Experience first-hand how outsourcing creates the space to focus on what you do best - serving customers exceptional food and hospitality experiences.